Ithaca acquires Challenger, moves on Stella Area development

Ithaca Energy Inc. has announced a series of corporate moves, starting with the acquisition of Challenger Minerals (North Sea) Ltd. for $35 million.

Offshore staff

LONDON – Ithaca Energy Inc. has announced a series of corporate moves, starting with the acquisition of Challenger Minerals (North Sea) Ltd. for $35 million.

If the Stella/Harrier field development plan is approved by the Department of Energy and Climate Change, Ithaca will add an 18% interest in the field along with an 8% interest in Broom field oil production and 10% interest in two undeveloped discoveries, Scolty and Torphins, adjacent to the Forties field and 10% in the Crathers prospect.

In a separate move, Ithaca has decided to develop the Greater Stella Area fields (Stella, Harrier, Hurricane, and Helios) using a production hub based on a floating production unit over Stella field. This plan brings Petrofac in as a strategic partner on the project. The Petrofac owned FPF-1 is identified as the “optimal vessel” for the development.

Concurrently, Ithaca has agreed to divest a 25.34% interest in the Hurricane field to Dyas UK Ltd. Ithaca has signed a letter of intent with Awilco Drilling for a semisubmersible rig to drill and appraisal well on Hurricane in 1Q 2012. Ithaca said it plans to manage the drilling through turnkey arrangements.

10/20/2011

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